Indian gaming startup Zupee has announced it will lay off 170 employees, about 30 per cent of its total workforce, following the implementation of a new regulatory regime that bans real-money online games. The company is also restructuring its operations and changing strategic priorities.
Why Zupee is Laying Off Employees
The layoffs are in response to the Promotion and Regulation of Online Gaming Act, 2025, which bans games involving monetary stakes, whether directly or indirectly. As a result of this new law, Zupee has had to shut its real-money gaming offerings.
In statements, Zupee’s CEO Dilsher Singh Malhi, said this was a difficult decision, but it was necessary to adapt to the new regulatory framework.
Zupee’s Employee Support Measures and New Business Strategy
Although many employees are being let go, Zupee is offering several aid measures:
- Financial assistance beyond the contractual notice period. Some long-serving staff will receive up to six months’ aid.
- Health insurance coverage that remains in place for its full term, even after departure.
- A medical support fund of ₹1 crore to help those impacted.
- A guarantee that affected employees will receive first priority for re-hiring when suitable roles open up.
On its business model, the company plans to shift focus towards social games and other entertainment products without monetary stakes. It aims to offer culturally grounded gaming, ad-supported content, and possibly subscription services. Zupee also announced new features such as “Zupee Studio” (micro-dramas) and a subscription called “Zupee Plus” for ad-free games and shows.
Industry-Wide Impact: Real-Money Gaming Ban and Its Effects on Indian Startups
Zupee is not alone. Several other firms operating in real-money gaming have similarly downsized. For example:
- Head Digital Works (which runs A23 Rummy) has reportedly laid off about 500 employees.
- Mobile Premier League (MPL) is also undergoing large-scale reductions in its India team. MPL will lay off 60% of its Indian workforce, approximately 300 employees.
- Baazi Games (PokerBaazi) and Games24x7 have also reduced staff numbers in recent weeks.
The new law marks a significant shift for India’s gaming sector. Companies that relied on real-money games are now pivoting to models that do not involve monetary risk to comply with the law.
Final Thoughts
Zupee’s decision to lay off 170 employees is a direct consequence of stricter regulations on real-money gaming in India. The company is making efforts to ease the impact on staff and is refocusing its business on social, cultural, and entertainment-based offerings. This episode highlights how legal changes can force rapid shifts in business strategy, especially in sectors sensitive to regulation.
Nitin Konde
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